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3A The following data pertains to Motorway Inc.'s inventory during the year 2021: Inventory, January 1 50 units at $10,480 Purchases: March 27 38 units
3A The following data pertains to Motorway Inc.'s inventory during the year 2021: Inventory, January 1 50 units at $10,480 Purchases: March 27 38 units at $9,320 September 26 46 units at $9,300 December 29 34 units at $9,740 Inventory, December 31 36 units INSTRUCTIONS a Determine the cost of the inventory on December 31 and the cost of goods sold for the year ending on that date under each of the following valuation methods: (i) FIFO, (ii) LIFO, and (iii) average cost. b Assume that the net realizable value (NRV) of each unit on December 31 is $9,700. Using the lower of cost or net realizable value rule, find the inventory amount under each of the methods given in instruction 1. c Using the lower of cost or net realizable value rule, which inventory amount will result in the highest net income for the period?
| 3A | The following data pertains to Motorway Inc.'s inventory during the year 2021: | |||
| Inventory, January 1 | 50 | units at | $10,480 | |
| Purchases: | ||||
| March 27 | 38 | units at | $9,320 | |
| September 26 | 46 | units at | $9,300 | |
| December 29 | 34 | units at | $9,740 | |
| Inventory, December 31 | 36 | units | ||
| INSTRUCTIONS | ||||
| a | Determine the cost of the inventory on December 31 and the cost of goods sold for the year ending on that date under each of the following valuation methods: (i) FIFO, (ii) LIFO, and (iii) average cost. | |||
| b | Assume that the net realizable value (NRV) of each unit on December 31 is $9,700. Using the lower of cost or net realizable value rule, find the inventory amount under each of the methods given in instruction 1. | |||
| c | Using the lower of cost or net realizable value rule, which inventory amount will result in the highest net income for the period? |
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College Physics
Authors: Jerry D. Wilson, Anthony J. Buffa, Bo Lou
7th edition
9780321571113, 321601831, 978-0321601834
